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tv   Real Money With Ali Velshi  Al Jazeera  October 4, 2013 7:00pm-7:31pm EDT

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>> this is real money. you're the most important part of the show. join our conversation for the next half hour by using the #aj real money. we actually hit the debt ceiling months ago. if it isn't raised by congress the treasury won't have money .
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it will very likely trig arrest recession. a recession. and many of you sense the danger that your dysfunctional government poses. your confidence has plummeted since the shutdown began to its lowest level since 2011. uncertainty or not this has been a remarkable year. the mark is down 3.5% from its all-time hit, that's a lot of money to lose for no other ran than intransient congress. congress has not done damage yet but that could change fast. and you may be wondering if now is the time to cash in your gains. most would say no.
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most professional investors don't have the time to get out and back in to make money. but congress needs to take this seriously. the consequences not of not ending this is too dire. the carnival did not stop twitter from taking a big step to selling stock to the public for the first time. the san francisco company filed a 2-page document ahead of its initial public offering ipo of facts and figures for a way of blasting short messages to large amounts of other people. here are the facts of the company that gave us the tweet. the first half re revenue was $254 million. and it's necessary loss is $69 million. this is consistent for a tech
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company. finally we learn in the month ending june 30th twitter monthly active users increased to 218 million. that's impressive but short of the 485 million users facebook had when it filed for its ipo. facebook's overhyped ipo will go down as one of the worst flops in history. how does twitter avoid the same fate? we're joined by michael, he cofounded and founded i'm going to give you the whole thing, a company that provides online reputation users to millions across the globe and author of "wild west 2.0". michael, good to see you. you don't want more facebooks. facebook is going to be fine in the end but we don't want ipos like that. it makes it hard to raise money. >> you're exactly right.
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the exciting thing about twitter is there is another big boom and more impressive than other ones would be. the companies that are hot are in the drop box. we're not sure that anything will fool oh low twitter.. after twitter, who knows what. >> it's not clear to you. let's go back to history. with a are the polls that you see? >> when there's a big swelling around tech nothing companies. that's the expectation not of current performance. they pay us for the promise of the future it's exciting because everyone is seeking in the world of investment. there's a lot of excitement with technology stocks. so facebook was the big one and after facebook what was left? there's a learning that it would'nt be twitter. now it's coming after twitter. get linked in then facebook.
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i hope the party continues because it's good for me. it's names like facebook and others that people say this is my stock. >> i'm not sure folks should be doing that. >> that's buying in to this ipo. if you're asking questions, here are a couple. according to studies, it's fairly recently. half of twitter followers are bots. they're not real people. we have to find out about what's more in this million follow layout. we also have to ask what the actual number show is. a lot of the numbers that analyst are using are from 10 or 15 years ago. they are still using the web-sites kinds of numbers it's clear that twitter users are a very small number of strong power users and when power law
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curved when most people in twitter are really consuming cog information. twitters that far more short of facebook. they shouldn't pay too much attention to either of those numbers. >> it's come meetly different nowadays to what it used to mean. the question is are what are the mmetics that are different. a difference from thei po now according to oh the federal shut down. . let's start now with the middle of the registration with his ipo. i talked to a couple senior bear, today. the fcc only has a couple week' money left. so, nobody is going to be left. so, november ipo might not be
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affected but this will be very bad for december's ipo. >> that's for people who are innovators. don't go anywhere. stay where you are. one final note on twitter. the name is twitter. it's the name of a bankrupt retailer but still has a penny stock. the stock sky rocketed more than 1500% on the friday. fifteen cents a share after investors confused it with twitter. tweeeter. twitter sticker will be twtr without the "q." but the stock hasn't started trading yet so don't buy or sell anything you think is twitter. i'll let you know when it starts. sounds like something hollywood dreamed up. the fbi shut down a web-site where you can buy illegal drugs
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to virtual guns while you play with the virtual currency. i will tell you what this coin is. that's "real >> obama administration officials said they need to enrol 2.7 u.s. redents between the ages of 18 and 35 in exchange plans to balance risks and hold down costs. will they enrol come 1 october - should they pay the face. >> joining me now is jen mishory, deputy director of young invincibles, she's in washington d.c. and yevgeniy feyman, a research assistant at the manhattan institute. thank you for being with us. i want to start with you yevgeniy feyman. the young people are crucial to the success of obamacare. >> absolutely. they'll balance out the risk pool, they'll keep premiums that
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need the insurance, and the administration is reaching out to them. >> jen, the young invincibles are in the 18-34 group. tomorrow night, fault lines investigates wage practices in the restaurant industry. >> the employers have the upper hand out here. they can steal from you and face very little if any consequences. >> basically this industry is saying, "we don't have to pay these workers at all. they should work for us but we don't have to pay them. >> two thirds of low-wage workers experience wage theft every week. >> you're telling me that these people are allowed to treat people like this and you can't do anything? here's a story that broke
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out in this 33-page complaint. law enforcement officials shut down an oh obscure online market that allegedly allowed users to buy and sell drugs and other illegal goods. the alleged mastermind, a name you may remember from an excellent movie the princess bride. the entire site operated using a virtual currency used bit coin. the fbi sized coins wors worth $$3.6 millions. >> you can't hold one. they're spirely virtual it's a digital wild west currency. according to we use there's no denying bit coins are currency. >> you can purchase video games, books, serveers and alpaca.
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>> you can buy bit coin not how you would ebs change your dollars on several digital exchange sites. you can use them as currency to buy things. you can trade them or hold on to them and hope they increase in value. unlike dollars or eur oh os or yen. they are unregulated. a nation's occur sendcy is about to crash a central bank steps in. when a bit coin kra*bg crashes you're out of luck. >> reporter: they go in to a so-called digital wallet. if you lose your password to your wallet you're out of luck again. there's no handy prompts to remind you. >> it's transferred the from person to a person. >> reporter: you can buy services on readit with bit coin and use them in some small businesses around the world or you can speculate that they will increase in value. that's not as dumb as it sounds since there are 11 bit coins in
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circulation today. >> it's everywhere and it's growing. there's a bit coin atm. the only guy town vail until the u.s. is with us night. aaron williams joins us from atlanta. good to see you. explain first of all, i told everybody that there are bit coins that you hold. what goes in to this atm. >> so, this atm, the user approaches it and incenters dollars in various dominations and it is sent to their online wallet. >> what is your experience? >> is this something running already? >> it is running in my living room. i'm doing a software update right this second. is anybody going to use it or will you keep it in your living room is this. >> i started a company. i plan to operate it across the
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metro atlanta area. >> how you fee follow this growh thing? you think coins become more or less popular as this result? >> . there's an issue -rb of concern. you want to see what this is like. i think it's past it and in fact this is going to be a. peter thing because the media no longer has a bad tied to it. i read about this complaint about this company. nothing is proven. are you concerned that the bit coin does get a reputation of if getting used for shady goods for buying goods and drugs. i believe you want a bit of a
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main stream currency where people use it instead of dollars. >> and they would. >> i take your point. >> what is it you hope people do? why should use the atlanta bit coin atm versus using cash? give me the advantage. the people they want to use an at because if you not on the high end of technically savvy then you find it difficult to find out how do i obtain bit coins. you can exchange those dollars by the bit coin. perhaps you just want to test. i just want to get one. i want to start exploring bit coins and you don't want to make the full commitment. perhaps, you, like many people
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in this country in the world are instant gratification-type people and you just want to have it. >> is this like a receipt or a statement? the. >> if you stand there you have your bit point wallet you will hear things. >> i didn't want to miss the point that there isn't actually a coin. we just showed a picture of a coin on air. there's not actually a bit coin. >> there's not a coin. thank you for explaining it to us. the crack down the like regulating in bit coin if i want raises question. this is not ton related to the
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business that you are in. this with bus does feel like. >> i like bit coins. this guy in atlanta started this. it goes up and down in price. this web-site still grows and up 4% of all bit coin transactions. when it gets off line all that evaporates. senator lost his investigation to bi bit coin. >> when i said, no, are you going to get a reputation. >> he said you can buy that with cash. >> i think this is good for bit coins. >> it's good new us.
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it's good news that it's coming out of the dark and can be made available for main stream transactions. i was in palo alto and there are few vendors and coffee shops. but no one uses it. so it's still early days but i am excited. none of my viewers have been around or they have the slow transfer for another. off line they are selling real goods. >> -- so something that we should be careful about. the u.s. dollar is back. it's in the competition. bit coin is very cool.
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i'm excited about it but let's take it slowly. >> we will do that and let's ask questions about it. >> he's a ceo of and the founder and author of one book and another one coming out. worth reading. good to see you. >> thank you. imagine a world where the u.s. an canada combine land, money, are resource and even government in to one big happy country with the goal of world jobs forever. it's only using bit coins. this is a real po real proposit. it's not as crazy as it sounds. . .
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>> i want you to stay with me when i talk abou about canada ad free trade. you are probably already celebrating what is still the large teslargest free trade agrn the world. according to the research service. canada accounted for 20% of total u.s. trade in 2003.
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that dropped to 15% in 2010. between 20 2003 and 2012, expers to china grew by 289%. do you get the picture here? less with canada, more with china. if you have been watching this show over last seven is weeks, you probably know i'm about ka canadian. as much as i love my home. canada remains an under populated unknown territory to the north. they are known as friendly but boring. with not. much to gloat about except good maple si syrup. both countries like apple pies. there are differences. the americans read the temperature in fahrenheit. there is a case to be made for canada and the u.s. merginging
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and becoming one entity besides the new flag with stars, stripes and a maple leaf. a united north america could have some benefits it would create an economic power house of $17.25 trillion. double the size of canada's economy and larger in size than the economy of japan, germany, france, britain and russia combined. but the grand scale of a u.s./canada merger doesn't stop there. the combineed area would be larger than land mass of russia and bigger in size the than all of south america. with all that land, the union between canada and the the u.s. would become a natural resource haven. last year for u.s. and canada combined produced almost $15 million barrels per day on average beating out saudi arabia
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by more than 3 million-barrels a day. today we asked you would you support a merge u.s. and canada. this person said: >> tell me what you think by tweeting me at alivelshi. >> if you're not still convinced of a north american union. diane francis is editor at large of one of canada's largest newspapers. she's american-born and lives in canada now and has dual citizenship. she has merger of the century which advocates for the u.s. and canada to become one. good to see you. this is provocative.
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i haven't heard this suggested. there's been times when some within has brought it up here and there. the canadians are shocked that i would propose this and there's a lot of anti-americans in canada among a number of people but canadians are thoughtful and the same kind of revulsion in the free-trade bill. >> canada and the united states, the world around us has changed. china's targeted the resorts of canada which is the world's biggest buried treasure in history. russia wants the arctic and canada doesn't have a military to defend it and the capitol enough. are you sure you said canada's military is smaller than sin singapores. >> they don't want the americans to control officially in the
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arctic. we have the largest and they have a navy like 20 times the largeer than ours. we've got a problem and we can't defend the country and can't develop it. you look at what's happened in alaska. it's unbelievable. >> you point out t most canadians like america and it exists and there might be some canadians that are going on in america. here in america it's denied. americans don't lose a lot of sleep about canada. >> they don't. it's never ban problem. that's part of the problem and the reason why since free trade was signed is 26 years ago, we have not gone from oh tkpwreszeo a monetary union. now we have a board hear the's thick and it's problem and there's drones patrolling the border and the reason is we have an intense amount of drug smuggle coming out of canada and not doing enough.
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the americans are very upset. we have a free trade. the border is getting worse, not better. this is a week for you to be here. i got this tweet where it says "if i were canadian, i would stay clear of the u.s. too many crazy white wingers who hate government." >> that doesn't help anybody furthering that idea. this book has a different merger models. we don't have to go all in like the germans did. that's just one possibility. that's just one idea. germany, we can do europe or joint venture. i would say with the shut down, if canada and the united states actually did merge, there would be 35 million democrats. >> the author -- why canada and america should become one country. >> my final thoughts night are about an ipo. not twitter that everybody has been talking about put one hitting closer to home for me.
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the sandwich chain went pot belly. the stock offered an offer place for people to lower $14 a share. the investor is able to bite. that joined a gain of 120%. now pot belly started in 1970. back then it was an antique shop with a free jukebox in chicago. its owner started to sell toasted deli sandwiches. 20 years later that the second pot belly opened. today the company has more than 300 stores tab iing in $270 million-dollars earning $13.6 million. those of you may not have seen a pot belly there's soon a chance.
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we flock to the movies and turn on your tvs to gawk at an imaginary world. it's now big business off screen. so, here's the el t-plt o elemep culture. the. >> so, are you ready for the apocalypse? millions of americans are